R.G. Barry says net income, sales fell in recent quarter

R.G. Barry reported disappointing financial results for its first fiscal quarter, blaming a sluggish retail environment and a shift in holiday shipments of its merchandise to retailers.

Tim Feran, The Columbus Dispatch

R.G. Barry reported disappointing financial results for its first fiscal quarter, blaming a sluggish retail environment and a shift in holiday shipments of its merchandise to retailers.

The Pickertingon-based footwear and accessories company is known Dearfoams slippers, Baggallini handbags and Foot Petals insoles.

For the first quarter, net income came to $4.8 million, or 41 cents per share, down from $6.1 million or 54 cents per share during the same quarter last year. Sales fell to $41.9 million from $47.2 million at the same time a year ago.

Shares were down about 4 percent in morning trading.

The decline in sales was attributed primarily to the footwear segment, whose sales were down $5.4 million to $32.8 million from the same quarter last year. Meanwhile, sales in accessories increased $128,000 to $9 million.

“We are obviously disappointed in our first quarter results," said Greg Tunney, president and CEO. “But ours has never been a quarter-to-quarter business. Holiday shipments to retailers can occur in either the first or second quarter, based upon retailer needs; and retail sell-through during the Christmas season has significant impact on our rate of profitability.”

The company also blamed the results on a decision to end a private-label department-store footwear program.

Looking ahead, the company expects its full year report will likely be down “slightly” from the previous year.

“We recognize that based upon our business outlook and economic headwinds, this is not going to be an easy year for many suppliers to retail,” said Jose G. Ibarra, chief financial officer.

Despite the disappointing report, Tunney said the company’s “healthy balance sheet” would allow it to continue on its expansion into new product categories, international markets and e-commerce.